When Someone Tells You,"We've Always Done Things That Way," It

question 27

Multiple Choice

When someone tells you,"We've always done things that way," it is likely that person is following ________.

• A)a standing plan
• B)a logistical plan
• C)an ad hoc plan
• D)a flexible plan
• E)a contingency plan

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Definitions:

Year-End Closing Process

The series of steps taken by businesses at the end of an accounting year to close out books, including reconciling accounts and preparing financial statements.

End-Of-Period Spreadsheet

A tool used in accounting to gather all the balances of ledger accounts to calculate adjustments and prepare financial statements at the end of an accounting period.

Closing Entry

A journal entry made at the end of an accounting period to transfer balances from temporary accounts to permanent accounts, essentially resetting the temporary accounts for the new period.

Post-Closing

The final phase in the accounting cycle where accounts are prepared for the start of the next period, following the closing entries are made to reset temporary accounts.